This guide provides general information only and should not be taken as legal advice. Businesses should consult the full Trade Licensing Act or seek professional guidance for specific cases.

What is a Trade License?

A trade license is a fee that businesses pay to their local municipality or licensing board in order to legally operate. Unlike taxes, which go into general government revenue, fees provide a direct service in return for payment.

Timeline: Trade Licenses in Belize

• 1976: Trade License introduced in Belize
• 1980–2008: Several amendments made
• 2017: Government announces plans to expand Trade License; new bill first proposed
• 2017–2023: Negotiations with the Government
• 2024: Trade Licensing Act passes through the National Assembly

Key Areas of the Trade Licensing Act

● Trade Licensing Boards
● Automatic Approvals
● Determination of Fees
● Businesses in Villages
● Renewing Trade License

Trade Licensing Boards

Trade Licensing Boards will be established for the following areas:

1. Judicial Districts of Belize, Orange Walk, Corozal, Stann Creek, and Toledo
2. All cities and towns
3. Cayo District:
   • Eastern Division
   • Central Division
   • Western Division
4. Caye Caulker Village

Automatic Approvals

Section 9(5) of the Trade Licensing Act introduces an automatic approval process for eligible businesses, including:

1. Home Office and Professional Services
2. Day Care Facilities
3. Educational Services
4. Civic, Social, and Business Associations
5. Residential Care Homes
6. Guest Lodging
7. Light Repair Services

Determination of Fees

• Trade Matrix: Each town, city, and judicial district must adopt a trade matrix specifying the rate per square foot based on business classification and trade zone.
• Fee Cap: Under Section 19, the trade license rate cannot exceed 25% of the productive footprint.
• Villages: Businesses in villages will pay a flat fee, rather than a matrix-based fee.

Productive Footprint (What It Means)

The productive footprint is the amount of square footage in your business premises that is directly used to carry out business activities. It excludes areas such as:
• agricultural lands
• lobbies
• restrooms
• stairwells
• customer parking
• storerooms
• shared hallways

These areas are only included if they are used for profit (for example, a storeroom used as retail space, or paid parking areas).

Renewing a Trade License

Under Section 25, businesses must apply to renew their trade license by November 15 each year. The renewal process includes:

1. Submitting the renewal form (Schedule 7), including details such as the declarant’s name, productive footprint, and nature of trade.
2. The Board reassessing the fee if inaccurate information is provided.
3. Possible refusal of renewal if the business is in default of property taxes or other local fees.